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RESOLUTION NO. 1 ® 0 4'®
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH APPROVING.AN AGREEMENT TO
LEASE AND LEASE OF BEACON 13AY RESIDENTIAL LOTS
AND AGREEMENT TO LEASE AND LEASE OF BEACON BAY.
COMMON AREA CONSISTENT WITH CHAPT.ER.74,
STATUTES OF 1978 AND THE CHARTER OF THE CITY
OF NEWPORT BEACH
WHEREAS, the City owns certain tidelandsand uplands in
an area known as Beacon Bay; and
WHEREAS, on January 9, 1950 City entered into a master
lease to said property with Carroll B. Beek„ Barton Beek, Joseph
Allan Beek,. Jr. and Seymour Beek jointly, which master lease
expires on December 31, 1987; and
WHEREAS, the westerly portion of the Beacon Bay
property has.been divided into individual lots and sublet for
residential purposes; and
WHEREAS, all said subleases will expire on the same
date as the master lease, December :31, 1987; and
WHEREAS, the,City Council finds it to be in the .public
interest and the welfare of the Citlt that the portion of Beacon
Bay which is currently leased for residential purposes remain
res. dental in character and that to enter into new agreements to
lease with.the. sublessees under terms and conditions'set forth in
• the Agreement`to Lease and Lease is in the public interest; and
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common areas, landscaped areas, beaches and other areas presently
• leased to the Beacon Bay Community Association should remain in
• said status in consideration of the Beacon Bay Community
Association maintaining said areas at no expense to the City and
further providing that the areas designated as tidelands within
said leased area remain open, available and accessible to the
public; and
WHEREAS, Chapter 74, Statutes of 1978 permits the
leasing of the residential lots in Beacon Bay which are located
on tidelands; and
WHEREAS, said Statute provides that the maximum term of
leases of residential lots in Beacon.Bay located on tidelands
shall not exceed fifty years; and
WHEREAS, Section 1402 of the Charter of the City of
Newport Beach permits the leasing and re- leasing of water front
property, provided the property was under lease as.of January 11,
1957, the date of adoption.of said provision of the Charter of
the City of Newport Beach; and
WHEREAS, the City Council hereby finds.that the maximum
lease term,for_ the residential lots in Beacon.Bay shall not
exceed twenty -five years for the following reasons:
A. Section 420 of the Charter of the City of Newport
Beach prohibits the City entering�i.nto a lease in excess of
• twenty -five years without voter approval.
• B. The City Council finds it undesirable to commit the
residential portion of Beacon Bay to residential use.for a period
longer than twenty -five years. At the termination of a twenty-
five year lease renewal, the City Council.of the City.of Newport
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Beach will be given another opportunity to determine . whether or
• not residential uses on that property are appropriate or whether
other uses are more appropriate. A lease term longer than
• twenty- five years would be an excessive commitment for this
particular residential use of tidelands and uplands property
owned by the City of Newport Beach.
C. The extension of the residential lease term beyond
twenty -five years would provide very little, financial advantage
to the City. An analysis of rental values has shown that a 35
year Lease will only increase the rental by 12.48 per annum.
Therefore, the modest increase in lease payments to the City do
not offset the disadvantage of committing the land to residential
uses for a,period longer than twenty -five years; and
WHEREAS, the City Council hereby finds and determines
that the leasing of the subject property is an act by the City of
Newport Beach in its proprietary capacity and further that the
execution of the Agreements to Lease the respective residential
lots and the common areas in the westerly portion of Beacon Bay
binds the City of Newport Beach to execute the Leases of said
properties in December, 1987, and said execution of said Leases
by and on behalf of the City of Newport Beach constitutes a
ministerial act and.a furtherance of the obligation of the City
of Newport Beach hereby created.
NOW, THEREFORE, BE IT RESOLVED by the City Council of
the City of Newport,.Beach that pursuant 'to the recitals
• hereinabove set forth, the Charter of the.C'ity of.Newport Beach
• and Chapter 74, Statutes of 1978, the form of Agreement to Lease
and Lease of the residential lots in Beacon Bay, respectively
attached hereto,, be and they are hereby approved.
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BE IT FURTHER RESOLVED that the Agreement to Lease and
Lease of the Common Area of Beacon Bay, respectively attached
hereto, be and they are hereby approved.
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BE IT FURTHER RESOLVED that the,Mayor and City Clerk
are hereby - authorized and directed to execute each individual
Agreement to Lease the respective residential lots in the
westerly portion of the Beacon Bay property and the common areas
in the western portion of the Beacon Bay property and that the
Mayor and City Clerk of the City of Newport Beach are further
authorized and directed to execute said Lease for the respective
residential lots in the westerly portion of the Beacon Bay
property and the common areas of the western portion of the
Beacon Bay property during the month of December, 1987, provided
that the Sublessees and the Beacon Bay Community Association and
their heirs, devisees, and assigns„ as the case might be, have
fully performed and executed their obligation under said
Agreements to Lease.
ATTEST:
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City Clerk
MAI . 1
ADOPTED this day of _ , 1981.
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HRC /pr
051181